Oracle (ORCL) Announces Q2 2026 Financial Results

Oracle Corporation (NYSE:ORCL) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 10, the company announced its Q2 2026 financial results, with total remaining performance obligations rising 438% YoY in USD to $523 billion. Notably, Oracle Corporation (NYSE:ORCL) highlighted that its RPO rose by $68 billion in Q2 2026, an increase of 15% sequentially. This was highlighted by new commitments from Meta, NVIDIA, and others.

Oracle Corporation (NYSE:ORCL)’s total quarterly revenues rose by 14% in USD and 13% in constant currency to reach $16.1 billion, amidst growth in the cloud revenues of 34% in USD and 33% in constant currency to $8.0 billion.

The increase in cloud and software business revenues in Q2 2026 and H1 2026 was mainly because of growth in its cloud revenues as customers purchased its applications and infrastructure technologies, and also renewed related cloud contracts. In constant currency, cloud applications made a contribution of 19% and 20% and cloud infrastructure contributed 81% and 80% to the growth in cloud revenues in Q2 2026 and H1 2026, respectively.

The company’s operating income came in at $4,731 million in Q2 2026, reflecting an increase from $4,220 million in Q2 2025 because of the increased revenues.

After the release, Goldman Sachs analyst Kash Rangan reduced the price target on the company’s stock to $220 from $320, while keeping a “Neutral” rating.

While we acknowledge the potential of ORCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.